Downtown office vacancies continue to dwindle, while the industrial vacancy rate hit its lowest level in more than a decade, according to Jones Lang LaSalle Incorporated (JLL). Photo by David Bloom /Postmedia, file

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Optimism abounds for Edmonton’s Downtown and industrial real estate markets, according to recent reports from a global commercial real estate services and investment management company.

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Downtown office vacancies continue to dwindle, while the industrial vacancy rate hit its lowest level in more than a decade, according to Jones Lang LaSalle Incorporated (JLL). Edmonton’s overall office market vacancies fell to 18.6 per cent in the second quarter of 2026, while Downtown posted a rate of 21 per cent. The industrial sector noted even tighter vacancies, hitting 3.3 per cent in the same quarter.

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Darryl McGavigan, executive vice president at JLL, sees many positive signs for Edmonton’s office and industrial markets.

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“It’s kind of good news, bad news, because we’ve got a lot of demand and a lot of groups that are looking for space right now, which is great,” said McGavigan. “It’s great for the Edmonton market, but the challenge being, if you kind of read between the lines here, is there’s not a lot of developers putting up spec product today, and so we’re going to be in a real vacancy crunch here by the end of 2026.”

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The Downtown sublease market was highlighted in JLL’s report, noting deals such as Imperial Oil obtaining the last remaining full floors at Stantec Tower, totalling nearly 80,000 square feet, and CGI taking 25,000 square feet in Epcor Tower. Edmonton’s sublease inventory “plummeted from over 350,000 square feet to merely 130,000 square feet” in six months, the report trumpeted.

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McGavigan sees the Downtown market moving in favour of landlords as the suburban office market remains jammed, forcing groups to look to the city’s core as an option. Creating vibrancy and tackling safety issues will also drive more people Downtown, suggested McGavigan.

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Edmonton’s overall office market vacancies fell to 18.6 per cent in the second quarter of 2026. Supplied by Jones Lang LaSalle Incorporated (JLL). Photo by Jones Lang LaSalle Incorporated /Supplied

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Edmonton’s industrial real estate market is experiencing declining vacancies, according to the JLL report, with the completion of Suncor’s facility in Sherwood Park and Mistatim Business Park being notable examples of new products brought to market.

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Overall, tightening inventory will be the prevailing storyline for Edmonton’s markets, said McGavigan.

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“We had a big boom in development in the last couple of years, and I think that a couple of our developers kind of got gun-shy because they got left with some lingering vacancy, and maybe they were just ahead of the rush,” said McGavigan. “We’ve got a couple (developers) that are very bullish, and they’re going to end up winning because they’re going to be the only ones to have buildings coming out of the ground.”

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Edmonton’s industrial sector vacancy hit 3.3 per cent in the second quarter of 2026. Supplied by Jones Lang LaSalle Incorporated (JLL).

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“It’s huge,” McGavigan said about the Meta project, noting construction companies and groups are clamouring for space in the Edmonton region to support the construction of the $13-billion centre.